MILANO – It starts in South America, with $ 2.99 per month, but the plan could soon expand to other countries where it is present. Netflix is on the hunt for new sources of revenue, after the long years of subscriber growth that culminated with the pandemic boom, but which have now come to an end. And so the streaming giant will insert an extra for those who want to share the subscription, so that users (starting with five Latin American countries) are able to add a “second home” to their profile. A squeeze on sharing passwords that will then extend to the rest of the world.
The news was reported by the Bbc, before the company released its quarterly results. With which a haemorrhage of subscribers emerged, for the second period of the year, but less strong than expected: it is 970 thousand fewer users, when 2 million had been counted. There remains the basic difficulty that society is facing. In the first quarter, for the first time in a decade, there was the first backlash with -200 thousand subscribers.
The reflections in the Netflix house are many. Among the reasons for the slowdown, there is undoubtedly the ride of competition. According to an analysis by JustWatch, in the United States, Netflix’s market share has dropped to 21%. It is now at Amazon Prime Video (20%), but it benefits from the pull of free deliveries. Further behind HBO Max (15%), Disney + (14%), Hulu (10%) and Apple TV + (6%). Also according to JustWatch, Netflix’s share in Italy is 28%, similar to that of Prime Video and almost double that of Disney +. For its part, Netflix can boast better indicators when it comes to the time users spend in front of its screen, but certainly competition is a headache that managers must take into account.
Among the reasons for reflection, there was precisely the practice of sharing accounts. A way tolerated so far, as a sort of implicit promotion of the platform in the hope that those who use the password of a friend or relative will one day be able to subscribe to the service on their own. But now comes a first limit to this practice, precisely with the aim of collecting new flows of money. The move will start next month in Argentina, Honduras, Guatemala, El Salvador and the Dominican Republic, with slightly different terms, and provides that each subscription will be linked to a home where you can enjoy videos, series and films. For additional homes there will be a request for an extra $ 2.99 per month. Depending on the different types of subscription, it will be possible to add up to 3 homes.
The possibility of using the service even while traveling, on laptops or mobile devices will be guaranteed, and a platform for controlling the various “homes” will be available from the personal account settings page. According to analysts, this progressive introduction of the price increase will allow Netflix to evaluate the consequences and the trend of subscriptions in a sort of “test” environment and then evaluate the next moves.
In parallel, Netflix is also studying the landing of advertising in its streams. This would allow users to subscribe less expensive but, in fact, with the videos interrupted by advertising messages. The partner was chosen for the management of the platform: Microsoft.